Ahead of the Bell: Factory Orders

WASHINGTON (AP) - Factory orders are expected to show a slightly stronger gain in April than they did in March.

Economists surveyed by Thomson Reuters are looking for factory orders to rise 1.8 percent in April, compared to a 1.1 percent gain in March. The Commerce Department will release the new report at 10 a.m. Thursday.

Last week, the government issued a preliminary report showing that demand for durable goods, items ranging from airplanes to kitchen appliances, increased 2.9 percent last month. That was the best showing in three months.

Excluding transportation, orders fell 1 percent in April, but that decline came after a sizable gain of 4.8 percent in March.

Manufacturing has been the standout performer so far in this economic recovery. U.S. companies are benefiting from rising demand at home and in major export markets. But there is a concern that the debt crisis in Europe could push that region back into recession, dampening demand for U.S. exports.

There is also a worry that the dollar, which has risen by about 18 percent in value against the euro since December, could also cut into U.S. exports to Europe by making American goods more expensive.

The rise in durable goods orders in April was led by a 228 percent surge in demand for commercial aircraft, a volatile category.

Boeing Co. booked orders for 35 new 777 planes, minus four cancellations in April. Last year, Boeing was cutting production, but with demand now rising as the global economy recovers, Boeing has said it plans to speed up production of the 777 as well as its 747 next year.